Question
At the end of the month the unadjusted trial balance of Four Star Company included the following accounts: Debit Credit Sales (75% represent credit sales)
At the end of the month the unadjusted trial balance of Four Star Company included the following accounts:
Debit | Credit | |
Sales (75% represent credit sales) | $1,280,000 | |
Accounts Receivable | $875,000 | |
Allowance for Doubtful Accounts | $10,750 |
Refer to the above data. If uncollectible accounts are estimated to be 2% of net credit sales, the net realizable value of Four Star accounts receivable at the end of the month is? If Four Star uses the balance sheet approach in estimating uncollectible accounts, and aging the accounts receivable indicates the estimated uncollectible portion to be $24,000, the uncollectible accounts expense for the month is? show and explain your work how you got the answer.
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